Citizens Advice Releases Tips to Avoid Holiday Debt
Heading out for last minute Christmas shopping? Saved the bulk of your required purchases for the final few hours? Citizens’ Advice warns you to think carefully about your purchases.
Teresa Perchard, director of policy at Citizens Advice, explains, “It is very easy to get carried away at Christmas and spend on the spur of the moment, especially if people leave it until the last minute. But every year, we see a huge increase in debt problems immediately afterwards.”
In hopes of stemming the debt a high percentage of Brits incur each Christmas, which this year is compounded by slow wage growth, high interest rates, and rising prices, Citizens Advice and Barclaycard have joined together to compile the following list of tips:
Plan ahead: consider how much you can spend and for whom you need to buy presents.
Pay regular bills: missed payment have high consequences.
Don’t bank on an overdraft: if you must, discuss with your bank beforehand.
Carefully consider store credit offers: they may be tempting, but calculate if they will really save you money, otherwise, stick to your cash, cheque, or debit card.
Scrutinize credit offers: read the small print! A missing or late payment on even an interest free credit line can have steep consequences.
Mama said to shop around: Consider using the internet to compare prices without driving to the stores.
Carefully consider extended warranties: in addition to your consumer rights to reject faulty goods, prices for a repair may be less than the warranty price.
Ms. Perchard summarized, “With a little forward planning, Christmas panic buying can be avoided. We hope that these top tips will help people take control of their money as Christmas approaches so they do not start the New Year with a debt hangover.”